RNS Number:8096O
Reefton Mining N.L.
19 August 2003



                              REEFTON MINING N.L.

     SKELETON COAST DIAMOND PROJECT - STAGE 2 BULK SAMPLING PROGRESS REPORT

The directors are pleased to advise that following a two week break the
earthworks crew (excavating, screening and trucking) have returned to site and
recommenced excavating trenches and screening the diamondiferous beach gravels.
A concentrated material size of 2mm to 14mm is being produced. The concentrate
is being trucked and stockpiled on the ore pad located adjacent to the Dense
Media Separation plant (DMS).

Approximately 1,700 tonnes of screened concentrate is currently available for
processing through the DMS.

Five trenches have been completed to date with samples taken over a width of 10
metres and to a depth of 2 - 3 metres to bedrock. Vacuuming of the bedrock
fissures, crevices and potholes with a specifically engineered industrial unit
is continuing and these samples are being stockpiled to be processed separately.

The recovery of diamonds by the DMS plant will commence in the next few days
following the arrival on site of the technical crew headed by Mr Bruce Michelle
and the DMS operators.

The current programme is continuing across the known 22 kilometres of
mineralised storm beaches determined from the previous programme and which
extend up to 2 kilometres inland.

Yours faithfully,

R J BARRAS

Company Secretary




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